Band Protocol, a Thailand-based blockchain startup, has secured $3 million in seed funding led by Sequoia India, marking the first blockchain investment made by the venture capital firm in Southeast Asia.
According to their press release from Feb. 19, other investors include names such as SeaX Ventures, an early-stage investment firm, and Dunamu & Partners, the investment arm of Dunamu, which operates the crypto exchange Upbit. The fresh funds will be used to speed up product development, and will help with establishing the firm’s market strategy.
Band Protocol, founded in mid-2017, is building a platform with which users can create token-curated communities, allowing platform monetization and governance. Using tokens as an economic incentive, the platform harnesses the “wisdom of crowd” to build a reliable knowledge base for a community.
In the press release, the company stated that, while the internet is a powerful platform for information generation and distribution, it has also led to the spread of inaccurate information, such as fake news and fraudulent data.
Citing a 2018 global study, which shows that 50% of its participants (19,000 men and women) had believed a news story before later finding to be fake, the CEO and co-founder of Band Protocol, Soravis Srinawakoon, said:
As software developers and technology enthusiasts, we have noticed a growing unavailability of trustable data on the internet, coupled with the rising trend of fake news. Our vision at Band Protocol is to bring online and digital communities together by creating an online platform for the creation of transparent and reliable data.
According to the press release, the company’s target customers are entities that wish to build a trusted database and online communities. It further states that their product has clear applications for credit bureaus, fraud detection, KYC and identity verification, as well as sites that offer online forums.